'Sell in May' Works at Asia Fx Too

        0740 GMT [Dow Jones] "Sell in May" is a traditional trading adage applying to the stock market, but BofA-Merrill Lynch says it may work for currencies in Asia too. It finds that none of the Asian currencies had an average positive return in May from 2006 to 2013, with the Indian rupee and Korean won the worst, generating an average decline of more than 2% versus the U.S. dollar. "One common explanation of the negative May seasonality is...because market volume starts to drop in May in anticipation of summer. The same could be true this year with the upcoming World Cup," the bank says. "In Asia's case, dividend outflow from some equity markets is also a possible reason for FX weakness." (jacky.wong@wsj.com; Twitter: @jackycwong)
        (END) Dow Jones Newswires

        May 02, 2014 03:40 ET (07:40 GMT)